Government spends on experiential marketing to cross Rs 15K crore in 2018
We know that the experiential marketing works on a very clear rationale that a consumer will buy, only if he/she feels a personal connection with the brand. A strong brand connect not only compels them to buy, but also creates brand loyalty.
With the increasing use of ad-blocking technologies, experiential marketing has become all the more relevant for brands. It must be mentioned that India is among the top 10 markets for the brand activation agencies with the organised events sector in India pegged at Rs 6,500 crore and expected to chart a growth of 13-14%.
The growth of experiential marketing is not limited to the private sector alone. Even the public sector is focusing big on this domain. Over the years, the government of India has emerged as a big spender when it comes to experiential marketing. According to reports, it spent around Rs 900 crore last year on experiential marketing which is likely to cross Rs 15,000 crore.
Overall, brands are spending roughly 15% of their marketing budget on experiential marketing in India. This has also been fuelled by the growth in many sporting extravaganzas like IPL and Pro Kabbadi League. There is a big need to create engagement around the same and therefore sports is contributing a lot to the experiential marketing growth.
According to some reports, CMOs globally are now predicted to allocate 21 to 50% of their budget to brand experience marketing over the next three to five years, which is a significant number.
Marketers believe brand experiences increase brand loyalty. Currently the top three tactics brands are using to drive brand experience are their website (58%), social media (57%) and email marketing (51%), but they are not making use of technology as an immersive tool. According to experts, companies that deliver more that 20 events per year are more likely to take advantage of technological tools, such as interactive touch screens, location mapping, virtual reality, and gamification.
